MONTREAL — Sportscene Group Inc. is seeing the positive impact of La Cage – Brasserie Sportive’s strategic brand repositioning, which is revealed in the company’s newly released financial results for fiscal year 2016.
For the year ending Aug. 28, 2016, total network sales of La Cage – Brasserie Sportive increased by 3.9 per cent to $106.8 million, despite fewer La Cage restaurants being in operation compared to the previous year. This sales growth is attributed to a 6.2-per-cent increase in the network’s average same-store sales.
Sportscene’s adjusted EBIDTA also rose by 21.5 per cent to $4.1 million, despite the cost of opening and closing La Cage locations and the investment involved in turning around non-banner restaurants’ profitability.
La Cage’s ongoing repositioning plan comprised three major elements: implementing a new interior design and renewing food offering along with the banner’s brand image. The company reports the brand’s recent repositioning is having a positive impact on customer traffic and network sales, especially for locations featuring the new design. New menu offerings have also helped reduce La Cage restaurants’ dependence on the sports calendar.
“We are entering fiscal 2017 with a more competitive market position, increasingly profitable restaurants and a stronger network across the board. We can therefore expect an increase in network sales in the coming quarters,” says Jean Bédard, CEO of Sportscene.